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@presmom22 so I need the equity then. If I have 50k in savings to benefit from offset I need to use that to buy a 200k home with 200k mortgage in which case I will start with 50k in equity/offset effectively only paying the interest on a 150k mortgage. If I use some of that 50k to buy a car or...

@presmom22 So hypothetically if I go borrow 50k and leave it in the offset how am I benefitting?

@kijani So what’s the difference between leaving money in the offset and paying down the mortgage? It’s the same thing in regards to interest rates and tax isn’t it .

@tsan But if you take that money out of the offset you have to start paying interest on it so it’s not the same as savings account, if take my money out of my savings account I don’t get charged interest. I’m not seeing how the offset is any different than equity.

@tsan Huh? If you have 100k sitting in an offset of a 100k mortgage you’re paying 0 interest. If you pull that 100k out to buy a car you will suddenly be paying interest on 100k, something like 6% pa. So your interest repayments go from 0$ per year to $6000 per year. They go up.

@jrminoh If you pull all your savings out of your offset to buy something your interest repayments go up because now you’re paying interest on the full home loan so isn’t that just the same as having no mortgage but using all my equity to buy something?

@jrminoh So it’s not really savings then it’s more like liquid equity.

@presmom22 Aren’t Offsets just paying down the mortgage without losing access to the credit. The minute you pull that money out of the offset your interest repayments go up as if you’ve just borrowed more money from the bank.

@daniel3112 But then I’ll be getting taxed by inflation

@sajeev What’s the point of saving if it’s just going to get eaten by the government or inflation?

@mobile7188381 The govt pretends to be fair

I found I have to pay tax on all the interest my savings is earning now. That pisses me off because it’s going up less than the price of food, rent, etc… yet I don’t get a tax discount for paying high energy bills yet I get taxed for getting more interest on my savings which is only happening...

@jaceew79 having a look at historical unemployment rate there was a point between april 2014 - oct 2014 where unemployment rose 0.6% so it's more than reasonable to expect unemployment to hit 4% by xmas if enough pressure is put on the economy.